Five multi-asset funds for your ISA

With so much uncertainty in the world today, it’s natural that investors may be undecided about where to invest their money this ISA season.

But with time running out before the April 5 deadline, the pressure is on: because if you don’t use your annual ISA allowance you lose it.

Luckily there are options.

Firstly, it’s important to remember that you can invest your ISA allowance into cash and then transfer it at a later date into an asset class that may offer better long term returns.

Secondly, there are multi-asset funds – funds that invest in all sorts of different things, run by professional managers who will decide which areas they think offer the best opportunities at any given time. In effect, they do the decision-making for you and, because they invest across assets, they provide diversification, which can help limit losses when stock markets are falling.

Here are five multi-asset funds that you may like to consider.

M&G Episode Income

This multi-asset fund aims to produce monthly income and long-term capital growth by investing in a diversified range of assets. The term “episode” refers to those periods of time when investors’ emotions cause them to act irrationally. The fund manager uses behavioural finance to find pockets of value and invest against the herd rather than following it.

Close Managed Income

This multi-manager fund aims to provide capital growth and income by investing in both actively-managed funds and exchange traded funds. It sits on the conservative side of the risk spectrum, with preservation of capital a strong focus alongside income generation. The fund is designed to be consistent in every way and this has fed through to performance.

BMO MM Navigator Distribution

This fund aims to produce consistent income distributions and long-term capital preservation. The managers will invest up to in 60% equities and at least 30% in fixed income, non-equity and cash, targeting a yield in the top 10% of income generators in the sector. Their ability to find less well-known funds and then blend them together makes it an interesting option.

VT Momentum Diversified Income

This fund aims to produce a high level of regular income, with the prospect of preserving the real value of capital over the long term. The managers, who adopt a value-focused style, have the flexibility to invest across all asset classes. These include UK and overseas equities, fixed income, property and specialist investments held through third-party funds. One of the managers spoke to us recently in this video interview.

Jupiter Merlin Income

Jupiter runs a suite of funds under the Merlin label. These funds, which have different investment objectives, are predominantly funds of funds, managed by a very experienced team of multi-manager professionals. In the Jupiter Merlin Income fund, the investment objective is to achieve a high and rising income with some potential for capital growth.

This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.